Trip.com’s shares surge after strong results and amid expectations the end of zero-Covid in China will spark travel boom
- The share surge came as Trip.com reported better-than-expected net income of 245 million yuan for the third quarter
- Beijing’s plan to shift from its zero-Covid strategy to living with the coronavirus is expected to unleash pent-up demand for travel
China’s largest online travel agency Trip.com saw its shares jump 9.2 per cent in Hong Kong on Thursday, with investors expecting a travel boom now that the country has moved to end its zero-Covid policy.
The share surge came as Trip.com reported better-than-expected net income of 245 million yuan (US$35.16 million) for the third quarter ending September 30, compared to a net loss of 868 million yuan for the same period a year ago. Revenue increased 29 per cent year on year to 6.9 billion yuan. Net income jumped 470 per cent over the previous quarter.
James Liang, Trip.com’s executive chairman, said in a statement that more border reopenings in the Asia-Pacific region are expected in 2023. “We are excited about the long-term outlook of the global travel industry and the opportunities that lie ahead,” he said.
Transport ticketing revenue jumped 49 per cent quarter on quarter to 2.6 billion yuan.
The search volume of people looking for air tickets on Trip.com’s platform has increased 160 per cent from December 7 before the 10-point guideline was published, according to China.com, the website run by the State Council’s Information Office.
